MONTEVIDEO – Uruguay’s government has announced a recapitalization of ANCAP through the forgiveness of the state-owned oil company’s $580 million debt to the Economy and Finance Ministry.
The recapitalization is part of a package announced on Tuesday by Industry, Energy and Mining Minister Carolina Cosse and Economy Minister Danilo Astori, who said the move was intended “to improve the equity situation” of ANCAP.
Along with debt forgiveness, Astori announced a $250 million loan from the Andean Development Corporation, or CAF, as part of an effort to obtain multilateral resources for ANCAP and reduce the oil company’s dependence on bank loans.
ANCAP’s debt to private banks stands at $500 million, the minister said.
The government must “de-dollarize ANCAP’s debt” since “it is heavily denominated in foreign currency while its assets are valued in local currency,” Astori said.